Activist investors flex their biceps

Minority shareholders increasingly use their muscle to force change in some of Britain’s biggest firms  while lining their pockets

THREE weeks ago, Marcus Agius, chairman of Barclays, received a call from Nat Rothschild of the New York hedge fund Atticus requesting a meeting.

The timing seemed odd, given Agius was trying to execute the world's biggest banking deal - the proposed £93 billion merger with ABN Amro. Because Rothschild is his wife's cousin, however, Agius agreed.

But a few days later, on Monday, June 4, Agius was swamped with work and called Rothschild to cancel, promising to hook up for a chat when the bid was complete.

Rothschild refused to be fobbed off and, rather than argue, Agius jumped in his car and headed to Atticus' office in London's St James's. Even as Rothschild greeted him, Agius had no idea that their meeting would threaten to torpedo Barclays' deal with ABN completely.

Rothschild gravely handed Agius a letter signed by Timothy Barakett and David Slager, chairman and vice-chairman of Atticus.